Grocery stores are excited to charge you higher prices
June 18, 2021. Summarized by summa-bot.
Compression ratio: 25.3%. 1 min read.
You might not be excited about paying higher prices for meat and vegetables, but your grocery store is thrilled.
New York (CNN Business)You might not be excited about paying higher prices for meat and vegetables, but your grocery store is thrilled.
The rising prices for staples like milk and pork affect grocery stores too, as they have to pay more to their suppliers.
When grocery stores' costs rise, stores will "mark up the full rate of inflation plus a little bit more," said Burt Flickinger, the managing director of retail consultancy Strategic Resource Group.
Leading grocery chains such as Kroger (KR) and Alberstons have said in recent days that they expect to benefit from rising prices.
Kroger can pass off costs to consumers when inflation hovers around that mark, McMullen said, and "customers don't overly react to that. "
"Businesses like ours have done well when in periods where the inflation was 3% to 4%," Albertsons CEO Vivek Sankaran said at an investor conference Tuesday.
Sankaran said customers will be able to afford higher prices because the economy is growing and consumers have cash to spend.
"We've never had an environment like this with such a strong consumer where inflation goes higher," he said.